New Delhi, Oct 22 (IANS) Global credit ratings agency Moody’s on Thursday pointed out that India is less exposed to external shocks due to its resilient growth and the policy reform momentum.
The global economic research firm placed its confidence on India’s ability to withstand global risk-aversion coupled with a slowdown in Chinese economy and subdued international trade in its report titled “Baa-rated Sovereigns: Diverging Resilience to Developing Global Risks”.
The report elaborated the impact of financial market turbulence on emerging markets over the past two years and highlighted the differing shock-absorption capacities among the five largest “Baa-rated” countries such as Turkey, Brazil, South Africa, India and Indonesia.
The report cited that India is found to be less exposed to external shocks than other sovereigns discussed in the report due to a positive outlook on its ‘Baa3 positive’ rating.
“The rating reflects our view that the relatively resilient growth and the policy reform momentum will slowly stabilise inflation, improve the regulatory environment, increase infrastructure investment and lower government debt ratios,” Moody’s Investors Service said.